Help to Buy: Equity Loan* is a Government scheme involving participating housing developers, and we are pleased to say we have been part of it since the beginning. Help to Buy makes home ownership easier for first-time buyers. You need only 5% as a deposit, and your mortgage is topped up by an equity loan from the Government, making your monthly mortgage repayments lower. The loan is interest-free for five years, and only has to be repaid after 25 years, or when you sell your home, whichever comes first.
The new scheme will run until March 2023 and we are now able to take reservations for homes completing after March 2021.
*Help to Buy: Equity Loan is available subject to eligibility, terms and conditions.
To apply for the scheme the value of the property you purchase is capped. This cap is dependent on the area of the country that you purchase.
The table opposite breaks down the caps by geographical region within the UK.
These caps are currently valid from April 2021 to March 2023.
|Region||Maximum property price|
|Yorkshire and the Humber||£228,100|
|East of England||£407,400|
Many of our developments are offering Help to Buy properties. We are committed to helping you get on the housing ladder.
View our participating developments including help to buy apartments and houses on the link below and get in touch with the relevant Sales teams, who will be able to answer any further questions you may have and arrange for you to come and see the development.
What is the Help to Buy scheme?
The Help to Buy scheme is designed to assist eligible buyers in purchasing new-build homes to live in. It was first introduced in 2013 by the then Chancellor of the Exchequer George Osborne with the aim of promoting the construction of new homes to meet the anticipated Help to Buy demand. A new version of the scheme was then introduced in 2021 for first-time buyers.
How does the Help to Buy: Equity Loan scheme work?
When you choose to take a Help to Buy: Equity Loan to buy a new-build home, the government will lend you a minimum of 5% and up to a maximum of 20% (40% in London) of the full purchase price. The remainder of the cost is made up with your 5% deposit and a 75% of a commercial mortgage, which you will need to take out yourself.
Am I eligible for the Help to Buy: Equity Loan scheme?
The scheme is available to first-time buyers buying a new build home. To qualify, the purchase price of you home must fall within the relevant regional price cap, plus you or anyone you are purchasing with must not own a home or residential land (now or in the past in the UK or abroad) and not have had any form of sharia mortgage finance. Full details on eligibility can be found here.
Is Help to Buy available for new-builds only?
The Help to Buy: Equity Loan scheme is available for new-build homes only. Previous versions of the scheme included a mortgage-guarantee on older properties - however this is no longer available.
Is the scheme available across the UK?
The scheme is available in England only. The governments of Wales, Scotland and Northern Ireland also operate similar, independent schemes.
Do you have to pay back your Help to Buy: Equity Loan?
You have to pay back your Help to Buy loan after 25 years, or earlier if you choose to sell your Help to Buy property. You can pay back the loan whenever you choose, incurring no penalties for early or late repayment.
How much of a deposit would I need?
You will need a minimum cash deposit of 5% of the value of your new home. You can pay more of a deposit if you wish.
How much interest would I pay on the scheme?
You will not have to pay interest on your loan for the first five years of owning the home, but you will have to pay a £1 monthly management fee.
From year 6 you continue to pay the £1 monthly management fee plus monthly interest of 1.75% of the loan. The interest rate will rise each year in April by the Consumer Price Index (CPI), plus 2%.
When do I pay back the loan?
You must repay your equity loan in full at the end of the loan term, when you pay off your repayment mortgage, when you sell your home, or if asked to repay in full if you do not follow the terms set out in your equity loan contract.
There are three main benefits to the Help to Buy: Equity Loan scheme, and they are:
What if I want to sell my Help to Buy home?
If you wish to sell a home bought on the Help to Buy scheme before you have paid back your equity loan, you will need to pay back the loan. The amount you repay for the loan is based on the market's valuation of your property at current rates, as opposed to the value of the home when you bought it.
Can I remortgage my Help to Buy home?
If you have bought a property with a Help to Buy loan and you are looking to remortgage, you can release the property's equity to repay the Help to Buy loan provided by the government. However you will need to check with your mortgage lender for any specific terms and conditions on your current mortgage.